Measuring happiness and well-being as a mark of firm success: utilizing Buddhism and the Middle Path

The importance of accounting in understanding the progress and profit of a firm cannot be understated. As such, it is essential to account for the full breadth of a firm’s resources and impact to understand a firm’s actual financial, social, and moral position. In the work by Wangchuk et al., the authors examine how integrating the practice of the Middle Path from Buddhism can benefit a business to become overall accountable financially, socially, and morally.Wangchuk et al. find current accounting practices problematic in a number of ways. They describe that current accounting practices focus on economic efficiency and solid financial outcomes by measuring the current economic performance of individuals and the firm. Through identifying, measuring, and communicating economic information, accounting supports the firm’s financial outcomes. However, Wangchuk et al. cite that this is a narrow and unsatisfactory measurement of firm success and that the firm’s social, cultural, and environmental aspects are unaccounted for, only prioritizing monetary characteristics.In recent times, accounting has also expanded to consider sustainability, workplace culture, social impact, climate impact and other features, but there is still a way to go. Areas of legitimacy, credibility, transparency, and several others still have considerable accounting gaps. As such, these accounting processes do not consider the firm’s progress as a whole but only its monetary gain and loss. To counter this, Wangchuk et al. suggest utilizing aspects of Buddhism.The central precept of Buddhism is to alleviate suffering through enlightenment and the balance between extremes. As such, Buddhism and religion can provide alternate perspectives on ethical, social, and moral practice. In Buddhism, well-being and happiness are found in the absence of suffering, which comes from a number of psychological and emotional conditions during day-to-day life, such as birth, illness, or death.Buddhism’s teachings of “the Middle Path” posit an ethical framework for firms to consider in accounting. Buddhism cites that unceasing material cravings will lead to suffering due to dissatisfaction in life and as such, posit a center position wherein a person does not lean into extremes; on one end, the extreme satisfaction of material pleasures, and on the other extreme suffering. In firms, the endless desire for profit, indulgent expenditure, evasion of tax, and hostile upper-echelon are all extremes that will lead to suffering along the supply chain, consumers, and employees.Another Buddhist teaching is the importance of selflessness, in that, every individual within the organization must commit to the happiness and well-being of every employee in the firm and as such, increasing the happiness of all through organizational activities. Kindness, compassion, and joy are all essential responsibilities for a firm to have within everyone, without self-interest or extreme attachment. Buddhism posits that the levels of individual, community, and society are interdependent and must consider each other.Wangchuk et al. posit the case of Bhutan’s Gross National Happiness (GNH) system as an example of such a practiced method of accounting. The index considers the well-being and happiness of its people by also considering psychological and spiritual well-being, standard of living, health, education, community, environmental impact, and governing satisfaction, as well as many more. As such, the index measures well-being and happiness rather than merely the country’s economic success. Through this system, the well-being and happiness of Bhutan’s people have noticeably increased.The Middle Path approach considers accounting as responsible for considering moral virtues and considering the well-being and happiness of all the people it interacts with.The practical undertakings of this investigation have several key implications:The progress of a firm can be measured in a number of ways, not only in monetary success but social, cultural, and ethical. In the article by Wangchuk et al., the authors posit not only this possibility but its necessity. Firms can be industry leaders not only with money but with happiness, sustainability, and impact.This review is based on “The Middle Path in Buddhism and its lessons for accounting” by Kinley Wangchuk, Leanne J. Morrison, Glenn Finau and Sonam Thakchoe, published in the Meditari Accountancy Research.